Gold miners Ramelius Resources and Northern Star Resources have jumped on the ASX today after releasing updated resources amnd reserves estimates for their respective gold projects.
Ramelius today announced an initial resource estimate of 63,000 ounces of gold at its Water Tank Hill deposit, which is adjacent to its Mt Magnet gold mine.
The company said the discovery meant there were now sufficient resources within close proximity to its St George decline at Mount Magnet to justify commencing a feasibility study to determine if a mining operation was viable.
At close of trade, Ramelius shares were up 4.2 per cent, trading at 37.5 cents.
Meanwhile, Northern Star shares gained 8.7 per cent on the ASX today, to finish at 99.5 cents, following the release of an upgraded resource at the Paulsens gold project near Paraburdoo.
Northern Star said the total JORC-compliant resources increased to 555,000 ounces, including 206,000oz measured, 167,000oz indicated and 182,000oz as inferred.
In the past two and a half years, Northern Star has delivered a 485 per cent increase in resources at Paulsens, allowing for mine depletion of 200,000oz.
Managing director Bill Beament said the latest increase put the group’s gold resource base at 2.2 million ounces of gold.
“Northern Star just declared a 1c interim dividend, following the 2.5c final dividend of last year, putting us on a 4 per cent full-franked yield,” Mr Beament.
“Paulsens is generating substantial surplus cash with total costs of $850-$950 an ounce and it now has a mine life of five years with every prospect of further increases in the future.”
Mr Beament said the company’s plans to establish a second 100,000 ounce per year project at Ashburton were evolving rapidly.
“We have significant exploration potential on the 200km stretch which divides the two projects,” he said.
“This demonstrates we have dividend yield, strong cash flow, ample mine life, low costs, production growth and significant exploration upside.”
